Mesa West Capital and Hudson Pacific Properties have provided Chinese technology company LeEco with with $140 million in financing to buy a plot of land from Yahoo! for the development of its future US headquarters in Silicon Valley, sources confirmed to Real Estate Capital.
Mesa West provided its share of the financing through Hudson Mesa West SA Democracy Way, a limited liability company the lender manages on behalf of a separate account with a private pension fund.
The first mortgage debt allows LeEco, and one of the largest online video companies in China, headquartered in the Chaoyang District of Beijing, to acquire a 48.6-acre site at 3005 Democracy Way in Santa Clara, California, where it plans to build a three million sq ft world headquarters campus.
“Our short-term floating rate loan will provide LeEco with enough runway to complete their pre-development plan,” said Mesa West VP Brandon Bachner, a member of the origination team, in a statement provided to REC. A spokesperson for the firm declined to give additional details on the structure and terms of the financing.
Yahoo! had owned the property since 2004. It lies within the Marriott Business Park, a 475-acre master planned development in Silicon Valley’s “Golden Triangle,” formed by the 237, 101 and 880 Freeways. Toshiba, Cisco, Samsung, Google, Apple and PayPal hold offices within proximity to the site.
LeEco will team with a US real estate partner to develop the property over several phases with, the first one million square feet of office space expected to be by 2020, sources said. The company established a US foothold late last year when it signed a 80,000 sq ft lease in nearby San Jose.
The financing was arranged by Brad Zampa in the San Francisco office of CBRE Capital Markets Institutional Group. Commercial Mortgage Alert first reported on the financing.